Engelhardt, Bryan; Rocheteau, Guillaume; Rupert, Peter - Federal Reserve Bank of Cleveland - 2007
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment `a la Becker (1968 … optimally. The model is used to study, analytically and quantitatively, the effects of various labor market and crime policies …. For instance, a more generous unemployment insurance system reduces the crime rate of the unemployed but its effect on the …